As we come to terms with the consequences of momentous decisions made in 2016, and prepare ourselves for an uncertain future, perhaps the ultimate step we need to take is less a tiptoe into the unknown, and more of a leap – a quantum leap, that is. Let me explain.
First, for a layman’s definition of the quantum concept, I turn to Canadian Prime Minister Justin Trudeau’s thorough yet concise explanation of quantum computing: “A regular computer bit is ether a one or a zero. On or off. A quantum state can be much more complex than that because, as we know, things can be both particle and waves at the same time, and the uncertainty around quantum states allows us to encode more information into a much smaller computer.”
To apply what Trudeau said to the way we think, a quantum state enables us to look beyond rigid, conventional systems of knowledge. A willingness to engage beyond established rigidities is what makes the quantum concept so useful in challenging traditional mindsets where the view is that the only purpose of business is to maximise profit.
In the early days of the impact investment movement, Antony Bugg Levine, now CEO of the Nonprofit Finance Fund – a community development financial institution with more than $250m in assets under management – called for a rejection of the binary in how investors think about financial and impact returns. Levine’s advice resonates all the more today, amid the shifting tectonic plates of global politics.
In today’s world we are too often faced with old-school binary thinking. Things are either 1 or 0. Good or bad. Pass or fail. Profit or purpose. But just as there have been massive advances in computing that have helped us think beyond the constraints of the binary, we are now at a point in business where we can activate strategies that are both good for companies and good for the societies in which they operate. Doing good and doing well is entirely possible.
The broader quantum leap we all must make, therefore, is towards a place where we can hold multiple states in our consciousness simultaneously, where we embrace opportunities to be hopeful, and refuse to shy away from our fears, and where we recognise the dark and still grow toward the light.
The quantum concept can be applied to businesses that generate profit while simultaneously addressing complex societal and environmental problems. Such businesses have already begun to emerge. They are known as B Corps, companies that operate to benefit not just their financial shareholders, but also their stakeholders – the workers, the local community and the environment.
Before providing some examples of B Corps, let me take a step back and introduce B Lab, a global nonprofit organisation set up to support and certify such companies. B Lab assesses applicants across four categories relating to how they operate – governance, workers, community and the environment, as well as their chosen impact model. Once an applicant meets the high performance standard B Lab requires, the company must make an amendment to its governing documents to ensure that stakeholders are given the same consideration as shareholders in the operations of the business.
B Lab-certified B Corps include Elvis and Kresse, a company that makes luxury lifestyle accessories from reclaimed materials, crowdfunding platform Kickstarter, education provider Laureate Education and long-term investor Generation Investment Management, to name a few. Though these B Corps offer different products and services, they share a common commitment to the values of the global B Corp movement and a belief that business can be a force for good.
The key is that B Corps embrace both priorities – profit and purpose – to create a virtuous cycle. Identifying a positive purpose for your business and working to realise it can help inspire your team and promote job satisfaction, fostering greater levels of innovation and deepening engagement with customers and investors, which in turn boosts profits and enhances your company’s ability to do even more good.
Corporate venturers are accustomed to thinking not just about financial returns, but also about generating long-term strategic outcomes for their parent company. The impact investing community welcomes corporate venturers who are interested in linking this strategic imperative with promoting positive social and environmental outcomes for the planet.
Start by visiting bcorporation.net, where you will find a database of 2,000 businesses around the world that have already begun harnessing the power of business as a force for good. Now more than ever, doing good just makes good business sense. Join us – and take the quantum leap.
This is an edited version of a comment that first appeared in Pioneers Post